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the other hand, expectations that are biased towards optimism worsen decision making, leading to poorer realized outcomes …
Persistent link: https://www.econbiz.de/10010746723
A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...
Persistent link: https://www.econbiz.de/10011071404